Euro hits six-month low against dollar

The euro hits a 6-1/2 month low against the dollar amid concerns over US tariffs and trade policy.

VALLECROSIA:

The euro dropped to its lowest level in 6-1/2 months against the greenback on Monday as investors worried about possible US tariffs that would hurt the euro area's economy.

Meanwhile the US dollar index, a measure of its value relative to a basket of foreign currencies, slightly overshot the highs seen right after the US presidential election with markets still waiting for clarity about future US policy.

The sensitivity of the euro to the threat of higher US import tariffs was evident late Friday when media reported that President-elect Donald Trump was lining up Robert Lighthizer, seen as a hawk on trade, to run his trade policy, analysts said.

Sources familiar with the matter said Trump has not asked Lighthizer to return to the agency overseeing trade policy.

The single currency was down 0.6% at $1.0657, after hitting $1.0656, its lowest level since May 1. It dropped 0.78% on Friday.

Politics remained under the spotlight after German Chancellor Olaf Scholz cleared the way for snap elections.